Magazine article Mortgage Banking

Equifax Launches Mortgage Risk Evaluation Tool

Magazine article Mortgage Banking

Equifax Launches Mortgage Risk Evaluation Tool

Article excerpt

Atlanta-based Equifax Inc. has launched an analytical tool designed to give mortgage investors deeper insights into mortgage borrower credit behavior, with a new level of detail.

Equifax Mortgage Market Risk Insight (TM) (Mortgage MRI) enables forward-looking valuations for mortgage-related securities so investors can use it to analyze mortgage loan performance and more accurately assess delinquency and default propensity, according to Dann Adams, president, U.S. Consumer Information Solutions, Equifax.

"The real power of Mortgage MRI is its ability to segment the universe of borrowers that are still current on their mortgage loans to help improve mortgage credit risk and cash-flow analytics", said Adams. "Mortgage MRI is the only tool available that provides aggregated credit data derived from the entirely of borrower credit profiles to gauge credit risk on mortgage debt."

This new tool gives investors updated credit information on mortgage borrowers aggregated at the ZIP code level. Data then can be segmented to reveal borrower credit health and credit-capacity trends for different loan vintages within a ZIP code, explained Adams.

In addition to providing a powerful tool for assessing risk in a trading-desk environment, Mortgage MRI also supports strategic market-risk analysis, pool and market-risk assessment and institutional valuation of mortgage-related assets, according to Tom Madison, senior vice president, Equifax Mortgage Solutions. …

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